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Can Any Homeowner Create a CPR in Hawaii?

Writer: Ana-Maria Contis
Ana-Maria Contis
Oct 6
7 min read

Updated: Oct 6

Short answer: not automatically. A CPR isn't a form you file. It's a legal process with conditions, and the state and county decide whether your property qualifies.

You've probably heard someone say, "Why not just CPR it?" Maybe it's a second dwelling on the lot, or a big property that could become two homes. Here is what the law and the state's own guidance actually say.

What is a CPR?

CPR stands for Condominium Property Regime, governed by Chapter 514B of the Hawaii Revised Statutes (HRS). A condominium is "real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions." In other words, it's a way of owning property, not a type of building.

A project needs two or more units, and each unit must have an exit to a public road (or to a shared area that leads to one). The Real Estate Commission does not create a CPR and does not approve or deny projects.

Who can create one?

All fee simple owners must sign. Under HRS 514B-31, "all of the owners of the fee simple interest in land shall execute and record a declaration submitting the land to the condominium property regime."

You have to be a "developer." The state's condo developer FAQ (DCCA) says: "you must be a developer to do a condominium." HRS 514B-3 defines a developer as "a person who undertakes to develop a real estate condominium project." So the law looks at what you're doing, not how big you are. Being a developer comes with duties:

  • You can't offer or sell any unit until the project is registered with the Real Estate Commission and the Commission issues an effective date for your "developer's public report" (HRS 514B-51).

  • That report is a disclosure document. Buyers must get it before sales happen, and you must update it when things change.

  • A rule may require at least half of the residential units to be offered to owner-occupants (Chapter 514B, Part V B). Ask your attorney how this applies to a small project.

  • When you sign the declaration saying the property follows zoning and building codes, you do so "subject to the penalties set forth in section 514B-69(b)."

  • Advertising before registration is prohibited.

Does every homeowner count as a developer? The sources I found don't draw a clear line for every case, such as an owner who never plans to sell a unit. That's a question for a Hawaii real estate attorney, or for a declaratory ruling (an official written answer) from the Real Estate Commission.

County rules may overlap and can restrict your options even more. HRS 514B-5 says a CPR must follow county zoning and permitting, including any supplemental county rules. Those layers can stack on top of the state rules, so the answer can be "no" even when state law seems to allow it. A CPR also doesn't give you any new building rights. The state says it "will not determine what can be built on a property, how many units can be placed on a property, or change building, zoning, density, or usage restrictions."

The main conditions

  1. Zoning and permits. The property must conform to county zoning and permitting rules. Start by calling your county planning or permitting office with your tax map key number or address.

  2. Code compliance. For existing buildings, the declaration must state that the property complies with zoning and building codes (HRS 514B-32(a)(13)). The DCCA is blunt: "Properties containing code violations and/or unpermitted additions are not in conformity and thus generally cannot be registered for sale."

  3. A certified map. A licensed architect, engineer or surveyor must certify the condominium map (HRS 514B-34).

  4. Recorded documents. The declaration, bylaws, condominium map, and master deed or lease are recorded at the Bureau of Conveyances or filed with the Land Court. The state recommends an attorney who specializes in this area.

  5. Registration before any sale. The Commission says this averages six to eight weeks from a complete filing, and charges fees. Fees change, so confirm the current schedule. Exemptions are narrow, such as a gratuitous disposition of a unit, a court-ordered disposition, or a foreclosure.

What about an ohana, ADU or guest house?

A CPR and an ADU are two different things, and mixing them up causes a lot of confusion.

  • A CPR is a way of owning property. It decides how ownership is divided: which parts you own alone and which parts you share. The state calls a condominium "a form of ownership, not a structure or a building." A CPR doesn't build anything.

  • An ohana, ADU or guest house is a second dwelling on a lot. It is a home built alongside the main one, and it is allowed (or not) by county zoning and building permits. In the counties' own wording, the main home is the "primary dwelling," and Honolulu says ADUs "are intended to provide rental housing."

They only meet when someone asks, "Can I sell the second dwelling separately?" A CPR is the legal tool that would split the ownership. And the counties have decided that for these types of homes, the answer is often no. That is why you see covenants (a "covenant" is a recorded promise that stays with the property):

  • Honolulu, ADUs: ADUs can't be sold separately. The owner must record a covenant promising never to put the lot into a CPR to separate the ADU from the main home.

  • Honolulu, Ohana units: To get an Ohana building permit, you must file a restrictive covenant agreeing not to register the property as a condominium.

  • Kauai: Under Ordinance 1166 (October 2024), a guest house "shall never be separated in ownership from the ownership of its primary dwelling," including through a CPR.

Rules for other counties may differ, so check with yours before planning around a second dwelling. Remember too that having a CPR doesn't give you permission to build an ADU, and having a permitted ADU doesn't give you the right to make it a condo.

Can a CPR be CPR'd again?

The honest answer: Chapter 514B doesn't say anything directly about putting a unit (or part of a project) into a second CPR. I'm not going to guess. Here is what the statute does cover:

  • Developer's reserved rights. The original declaration can reserve rights to add real estate, create more units, or subdivide or combine units (HRS 514B-32(a)(12)). Those rights have to be written into the declaration from the start.

  • Changing the declaration. Amendments generally need the owner vote the declaration specifies (67% of the common interest unless it says higher). A unit's share of the common interest is permanent and can't be changed except by recorded amendment with owner and mortgagee consent, or through reserved developer rights (HRS 514B-37).

  • Removal and a fresh start. Under HRS 514B-47, owners holding at least 80% of the common interest, with lienholder consent, can record an instrument removing the property from the condominium law. All owners can also do it together. The law allows the property to be submitted again later.

Any of these paths means a lot of owners, lenders, attorneys and county sign-offs. If you're thinking about it, talk to a Hawaii condominium attorney first.

Does a CPR sell for less than a true single-family home?

Often, yes, but there is no official number. I could not find a state or county source that sets a standard price adjustment, and the sources I did find don't give a percentage. Here is what they say:

  • Pricing: Oahu Real Estate says CPR properties typically sell for less than a comparable home that is not a CPR, which can be a way to get a nice house for less if you're comfortable with the condo idea. Hawaii Life makes a similar point, describing the chance to own a single-family home for less than a traditional single-family sale.

  • Resale: Oahu Real Estate also warns that some buyers don't like the CPR concept, so resale demand may be lower than for a home that is not a CPR. A Maui brokerage guide adds that rental or use rules in the CC&Rs can narrow the pool of buyers.

  • Financing: The same Maui guide says some lenders require extra documentation and may take longer, and suggests starting lender conversations early.

  • Ongoing costs: Most CPRs have an association that collects dues for shared parts of the property, and insurance is often a master policy for the shared areas plus a policy for each owner. Fees vary a lot. Some CPR'd single-family homes have almost no fees, while larger condo buildings have more rules and fees.

How big is the gap on a real home? That depends on the property, the island and the market, and I'm not going to guess at a number. The best way to find out is to compare recent sales of CPR homes and fee simple homes in the same area. I'm happy to pull those comparisons for you. Also, rules and practices may differ from island to island.

The bottom line

A homeowner can't simply decide to CPR a property. You need every fee owner to sign, a property that follows county zoning and permits, a certified map, recorded documents, and registration before any unit is offered for sale. County rules may overlap and add limits, and some structures, like Honolulu ADUs and Ohana units, are restricted by covenant. Start with your county planning office and a Hawaii real estate attorney.

I'm happy to talk through what this means for buying, selling or valuing a property. Call me at 808-800-7821 or email Info@CoastalHE.com.

This post is general information based on the sources below, not legal advice. Laws, county rules and fees change, so confirm details with your county and a qualified attorney. Information reviewed October 2026.

Sources

Comments

Super knowledgeable! Communication is excellent!!! We didn't just go look at homes but we experienced different parts of island life. It was above & beyond any other showings I've attended. Mahalo

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